XN000022-1977-07-25 — Page 2

MONDAY, JULY 25, 1977

SIGNING OF HK-US TEXTILE AGREEMENT HELD UP BY MINOR DRAFTING PROBLEMS

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FORMAL SIGNING OF THE NEW HK-US TEXTILE AGREEMENT, NEGOTIATIONS ON WHICH WERE CONCLUDED IN GENEVA TOWARDS THE END OF JUNE, HAS BEEN HELD UP BY +MINOR TECHNICAL PROBLEMS OF DRAFTING+, THE ACTING DIRECTOR OF COMMERCE AND INDUSTRY,

MR. BILL DORWARD, SAID TODAY.

BUT AN EXCHANGE OF LETTERS HAD BEEN COMPLETED WHEREBY

THE CURRENT AGREEMENT, DUE TO EXPIRE ON SEPTEMBER 30, WAS EXTENDED UNTIL THE END OF THE YEAR, HE SAID.

THIS EXTENSION WILL, IN EFFECT, TURN THE LAST YEAR OF THE CURRENT AGREEMENT INTO A CONTINUOUS 15-MONTH RESTRAINT PERIOD. THE QUOTA LEVELS FOR THE CURRENT YEAR WILL BE PROPORTIONATELY INCREASED TO COVER THE EXTRA THREE MONTHS.

MR. DORWARD ADDED: +THE TRADE IS RELIEVED BY THE THREE- MONTH EXTENSION WHICH WILL EASE SOME OF THE PRESSURE ON QUOTAS. DESPITE GENERALLY SLACK MARKET CONDITIONS, DEMAND REMAINS STRONG FOR SOME CATEGORIES.+

COMMENTING ON THE DELAY IN SIGNING THE NEW AGREEMENT, WHICH WILL ENTER INTO FORCE ON JANUARY 1, 1978, MR, DORWARD SAID THAT IT WAS UNFORTUNATE.

HE STRESSED, HOWEVER, THAT WHAT REMAINED TO BE RESOLVED WERE MINOR TECHNICAL PROBLEMS OF DRAFTING WHICH DID NOT AFFECT THE BASIC TERMS OF THE NEW AGREEMENT.

+BUT THE EXTENSION SHOULD ENABLE THE TRADE TO GO ON IN THE MEANTIME, AND IN THE KNOWLEDGE THAT A NEW AGREEMENT WILL BE IMPLEMENTED AS FROM JANUARY 1 NEXT.+

THE COMMERCE AND INDUSTRY DEPARTMENT HAS ISSUED A NOTICE TO EXPORTERS EXPLAINING TO THE TRADE THE MECHANICS OF THE THREE-MONTH EXTENSION. THE DEPARTMENT HAS ALSO OFFERED ADDITIONAL QUOTAS TO EXISTING QUOTA-HOLDERS COVERING THE THREE- MONTH PERIOD.

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